5 must reads for the weekend

We keep our ear to the ground for the interesting stats, insights and discussion points you need to feel in the know about tax.

1. Tax transformation  

Tax can play a pivotal role in bolstering supply chain resiliency and transformation. With the current global landscape marked by geopolitical tensions, climate change, and conflicts, supply chains are experiencing unprecedented upheaval. To navigate these challenges, multinationals need to enhance their resilience and agility while aligning their activities with ESG objectives. The tax function is crucial in this transformation, managing taxes and leveraging incentives to support supply chain restructuring. Creating diversified, transparent, and sustainable supply chains is imperative for multinational enterprises. Collaboration with the tax function reveals opportunities to reimagine supply chains while managing risks and remaining compliant. By aligning tax considerations with sustainability goals, companies can improve resilience, adapt to regulatory changes, and drive sustainable growth. 

How tax is improving supply chain resiliency  

2. Tax got your tongue? 

Tax professionals and CFOs are increasingly excited about the potential of generative AI (GenAI) to revolutionize tax and finance operations. 87% of respondents in EY’s 2024 Tax and Finance Operations Survey believe GenAI can boost efficiency, a huge jump from just 15% last year. However, 75% are still in the early stages of adopting the technology. Marna Ricker, EY Global Vice Chair – Tax, shares, “GenAI is already revolutionizing the tax and finance industry by helping manage complex reporting tasks and large amounts of data. It’s empowering tax professionals to be more efficient, focus on strategic tasks, and make better decisions.” Despite challenges like cost pressures, tighter regulations, and talent shortages, businesses are turning to AI to manage data-heavy tax requirements and streamline operations.  

Tax leaders optimistic about GenAI despite cost concerns  

3. The taxing balance 

To go global or local? That is the question. The question of whether multinational companies should manage their business activities on a global scale or tailor them to local markets is still a complex and ongoing debate. However, when it comes to handling taxes, the decision is even more critical. While a decentralized approach can provide flexibility and local expertise, it doesn't necessarily work the same way for managing a company's overall tax strategy. By placing tax at the center of your transformation strategy, you can navigate complexities with confidence. A centralized tax function can simplify following tax laws, improve oversight, and ensure consistency across different regions, helping the business stay flexible and compliant. Advances in technology, especially tools like GenAI, are set to significantly affect tax functions. As businesses evolve, the challenge remains: how can companies balance global efficiency with local relevance in their tax strategies to stay compliant and adapt to rapid change? 

 A discussion of various tax function operating models  

4. Go with the flow 

With the rise of hybrid and remote work, employees are moving across different tax jurisdictions, creating new challenges for employers. By weaving tax planning into the overall workforce strategy, businesses can better meet employees' changing needs and fine-tune total rewards offerings. This is more important than ever — according to the EY 2024 Work Reimagined Survey, organizations with a strategic approach to talent and mobility are more likely to outperform competitors. With 38% of employees considering quitting in the next year, aligning tax, rewards, and mobility strategies can help create an environment where employees not only thrive but also recommend the company to others. 

Will the future of talent be shaped by the flow of an untethered workforce?  

5. Maximizing returns 

Managing large volumes of tax data can be a real headache for organizations, but there's a silver lining. Tax functions are starting to see the potential within all this data. By turning information into insights, they can gain a competitive edge, reduce costs, cut risks, and make better decisions. However, this isn't a walk in the park. With the increasing data and rising expectations from regulators and stakeholders, tax functions are investing more in technology to streamline data management. But technology alone won't solve the problem. An IT-first approach can lead to isolated data pools that don't communicate well with each other. Instead, a new approach is needed—one that combines leading-edge technology with deep data capabilities, tax expertise, and a collaborative mindset... 

How a new approach to tax data is overcoming three common challenges  

If you do one thing: 

Declutter your workspace for a productivity boost. 

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